The Seoul Rehabilitation Court announced on the 23rd that it has made a decision to grant the rescue financing requested by Homeplus. The scale of the rescue financing is 60 billion won, and MBK's Chairman Kim Byung-joo and Vice Chairman Kim Kwang-il have agreed to provide joint guarantees.
According to the court, Homeplus submitted an application on the 11th for approval of Debtor In Possession (DIP) financing amounting to 60 billion won from Curious Plus LLC. The interest rate is 10% per annum, and the maturity is three years. DIP financing is a type of rescue financing that provides loans to corporations that have initiated corporate rehabilitation procedures.
Investors who invest money through DIP financing can receive higher interest rates than market rates while taking on significant risks. They can also be paid back before other creditors.
The court explained its decision by stating, "It recognized the necessity to sustain Homeplus's normal operations and rehabilitation procedures." It further noted, "As the joint guarantors have waived their right of recourse, there are no unfavorable matters for Homeplus." This means that even if the joint guarantors pay back money in the future, Homeplus is not required to repay that money to the joint guarantors.
Meanwhile, Curious Partners plans to lend to Homeplus using a blind fund currently in operation. Curious Partners decided on a private equity fund for corporate financial stability valued at 430 billion won last month.